The results reveal a mature industry for innovation, as the traditional way of buying life insurance is failing by 36 percent on average. The analysis comes from a group of 4,800 Canadians who already had life insurance coverage before visiting the online life insurance platform. These results reveal a mature sector for innovation, as the traditional approach to buying life insurance is failing in many Canadians. Using advanced data analysis, the platform infused by PolicyMe technology operates on the belief that there is life insurance to maintain a family's lifestyle in the event of premature death, not to overestimate Canadians on expensive and unnecessary policies. The analysis sheds light on the pitfalls of the life insurance industry and details the ways in which Canadians can make more appropriate decisions when it comes to protecting loved ones. "We see that too many Canadians are being sold with the wrong life insurance," said Andrew Ostro, co-founder and CEO of PolicyMe. "Our hope is that this analysis will make people more aware of the common pitfalls that occur when shopping for life insurance. Canadians have to ask the right questions, get the most accurate recommendation when it comes to adaptation of the product and coverage and find the best price ".
Three reasons why Canadians pay too much for life insurance: the sector calculates coverage using too simplistic a formula. Canadians with an existing policy had an average coverage of 32% more than recommended by PolicyMe. For example, the average customer had coverage of $ 625,000 when he only requested $ 425,000 to protect his family. This is because the typical industry calculation uses a formula that multiplies family income by an arbitrary number (usually 10-15 times family income). Alternatively, PolicyMe uses proprietary algorithms and advanced statistics to simulate the expected finances of a family and identify the amount necessary to maintain the lifestyle in the event of premature death. Too many people have mortgage life insurance instead of term life insurance. For the vast majority of Canadians, the recommended life insurance product is term life insurance. However, many people are still choosing to purchase mortgage life insurance to protect their loved ones from mortgage payments. This is because mortgage life insurance is promoted by mortgage loan owners who are incentivized to sell the product. According to current analysis, customers who replaced mortgage life insurance with term life insurance reduced their premiums by an average of 46%, with monthly payments falling from $ 67 to $ 36. Canadians don't shop at the best price. Life insurance premiums are based on five factors: age, gender, smoking status, amount of coverage and duration of the policy. For each combination of factors, different insurance companies offer different prices for the same coverage amount and duration. According to the analysis, Canadians saved nine percent on average by using a comparison platform like PolicyMe to find the best price. However, many traditional life insurance brokers do not seek the best deal, as they are tied to certain suppliers or influenced by bonuses and commission structures. PolicyMe takes an honest and transparent approach to life insurance. In fact, they advised 26% of their users not to buy life insurance because they don't require coverage. The company's owner life insurance check is designed to provide users with the information they need to make informed decisions about their coverage needs. PolicyMe's online platform offers customers a digital experience to guide the entire insurance purchase process, helping Canadians get personalized advice, compare quotes and apply for life insurance in just a few clicks . The company was founded by Andrew Ostro, Laura McKay and Jeff McKay in 2018 and is headquartered in Toronto, Canada. www.policyme.com/SOURCE PolicyMe